Standard Costs, Decomposition of Budget Variances, Direct Materials and Direct Labor EZ Tees Corporation produces T-shirts. The company uses a standard costing system and has set the following standards for direct materials and direct labor (for one shirt): During the year, EZ Tees produced 124,000 T-shirts. The actual fabric purchased was 99,000 yards at $1. per yard. There were no beginning or ending inventories of fabric. Actual direct labor was 12,500 hours a $14.80 per hour. Required: 1. Compute the costs of fabric and direct labor that should have been incurred for the production of 124,000 T-shirts. 2. Compute the total budget variances for direct materials and direct labor. Direct materials $ Direct labor q 3. Break down the total budget variance for direct materials into a price variance and a usage variance. Materials Price Variance Materials Usage Variance Feedback Check My Work Prepare the journal entries associated with these variances. If an amount box does not require an entry, leave it blank. 4. Break down the total budget variance for direct labor into a rate variance and an efficiency variance. Feedback Check My Work 4. If necessary, refer to the textbook for the applicable formulas. Prepare the journal entries associated with these variances. If an amount box does not require an entry, leave it blank